Question

Current Attempt in Progress The following transactions are for Marin Company. 1. On December 3, Marin Company sold $516,800 of merchandise to Cullumber Co., on account, terms 3/10,n/30. The cost of the merchandise sold was $310,100. 2. On December 8, Cullumber Co. was granted an allowance of $23.300 for merchandise purchased on December 3. 3. On December 13, Marin Company received the balance due from Cullumber Co. (a) Prepare the journal entries to record these transactions on the books of Marin. Marin uses a perpetual inventory system. (If no entry is required, select "No Entry"for the account titles and enter Ofor the amounts. Cre No. Date Account Titles and Explanation Debit Credit 1. (To record sale of merchandise on account) (To record cost of merchandise sold on account) Assume that Marin Company received the balance due from Cullumber Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. Date Account Titles and Explanation Debit Credit Jan. 2

Answer 1

No.	Date	Account Titles and Explanation	Debit	Credit
1.	December 3	Accounts receivable -Cullumber Co.	$516,800
		Sales		$516,800
		( To record sale of merchandise on account)
	December 3	Cost of goods sold	$310,100
		Inventory		$310,100
		( To record cost of merchandise sold on account)
2.	December 8	Sales return and allowance	$23,300
		Accounts receivable - Cullumber Co.		$23,300
3.	December 13	Cash	$478,695
		Sales discount	$14,805
		Accounts receivable - Coullumber Co.		$493,500

Final amount due = Sales - sales allowance

= 516,800-23,300

= $493,500

Sales discount = Final amount due x discount %

= 493,500 x 3/100

= $14,805

Cash received = Final amount due - sales discount

= 493,500-14,805

= $478,695

(b)

Date	Account Titles and Explanation	Debit	Credit
Jan. 2	Cash	$493,500
	Accounts receivable - Cullumber Co.		$493,500

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